Ann: Successful capital raise of A$3.3M by placement, page-11

First 11 Last

Share
Profile

Follow
seaemay

2,662 Posts.

98

11/01/18

11:55

Post #: 30222419
Share

Originally posted by Tadtech ↑

The AIM listing will be no panacea in my view, the CAS float is being deemed by some as a funding of last resort as Aussie investors appetite for Crusader is poor due to past performance, they are trying to tap the London market therefore.

Has anyone here looked at the proposed AIM float issue price? It is based on what is known as a VWAP formula, basically an average price of currently issued shares over a period of time. This formula is dreaded by AIM investors, surprisingly there is no floor price in place either, that could suggest the advisers think the stock may go considerably lower.

VWAP allows entities to short the underlying stock (the current ASX issued shares) and buy back in a placing, or in the case of CAS the AIM share issue. I am not sure forward selling of CAS will occur but I would not put it past certain market entities. I would not personally be a buyer of Crusader until the VWAP price was fixed ahead of the listing.

In a nutshell existing CAS shareholders will be heavily diluted (as much as 50% potentially) by the AIM listing. The company wants to raise circa A$15m-A$20m but this will only fund so much, the real 'hit' will come from the circa A$100m needed to build a mine. I would not rule out further dilutive Capital Raises either, Corporate costs and overheads at Crusader are exceptionally high for a company of it's size in my opinion.

There is significant risk ahead, country risk, funding risk, political risk and project risk, many have failed in Brazil. I am not so sure the AIM float will be so successful therefore. Time will tell.

Good luck to all, remember this is only my opinion and no advice is intended.

Expand

Tadtech, as you said, 'no advice is intended', but I get the feeling half a dozen holders have taken it anyway; hence the sell-down.

CAS Price at posting: 6.8¢ Sentiment: Hold Disclosure: Held
1 Upvote

0 Great analysis

Reply

Top Stories

ACW

This biotech stock raised $11M in a risk-off environment. Its Alzheimer's drug could change the game

MIN

MinRes's Ellison knows he screwed up – for that reason, hunt for new Chair to be sped up

WC8

Pan Asia rebranding to 'clear confusion' after bagging $35M for Chile projects

NTI

Neurotech bounces back from FDA rejection with new NTI164 baseline study

History-making uranium sample grades and an imminent drill run. Infini Resources is poised to transform in 2025

There are more pages in this discussion • 6 more messages in this thread...

First 11 Last

Add CAS (ASX) to my watchlist

Ann: Successful capital raise of A$3.3M by placement, page-11

Top Stories

This biotech stock raised $11M in a risk-off environment. Its Alzheimer's drug could change the game

MinRes's Ellison knows he screwed up – for that reason, hunt for new Chair to be sped up

Pan Asia rebranding to 'clear confusion' after bagging $35M for Chile projects

Neurotech bounces back from FDA rejection with new NTI164 baseline study

History-making uranium sample grades and an imminent drill run. Infini Resources is poised to transform in 2025

Featured News